SR 03-22-2016 3K
City Council
Report
City Council Meeting: March 22, 2016
Agenda Item: 3.K
To: Mayor and City Council
From: Karen Ginsberg, Director, Community & Cultural Services
Subject: Award RFP and execute Professional Services Agreement to provide
Program
Recommended Action
Staff recommends that the City Council:
1. Award RFP #67 to Levitt & Rosenblum, CPAs, a California-based company, for
(HSGP);
2. Authorize the City Manager to negotiate and execute a professional service
agreement with Levitt & Rosenblum, CPAs, in an amount not to exceed $30,000 for one
year, with 4-additional 1-year renewal options in the amount of $120,000, on the same
terms and conditions for a total amount not to exceed $150,000 over a 5-year period,
with future year funding contingent on Council budget approval.
Executive Summary
-year operating
grants totaling over $8 million to 22 non-profit human service organizations supporting
45 unique programs. The City of Santa Monica engages an independent firm to
evaluate accounting and internal control systems, monitor program compliance and to
conduct fiscal evaluations of non-profit organizations funded through the HSGP. On
December 21, 2015, the City issued a Request for Proposals (RFP) for professional
process, Levitt & Rosenblum, Certified Public Accounts (CPAs) is recommended to
provide professional assurance services and fiscal evaluations of City-funded non-profit
organizations. Services will be provided on an as-needed basis as required by staff
during the term of the agreement. The total cost of the services for a five-year term will
be $150,000.
Background
and non-profit organizations working to increase the wellbeing and improve quality of
. The current FY2015-19 HSGP provides
1 of 4
over $8 million annually to 22 human service organizations supporting 45 programs
aimed at meeting the needs of Santa Monica target populations and service areas,
including youth and families, seniors, people with disabilities, victims of domestic
violence, low-income households, and those who are homeless.
While HSGP grantees are required to contract with their own independent auditor in
order to prepare annual Audited Financial Statements, effective fiscal monitoring
remains an important tool for and recognized best practice of effective grant
management. Throughout the course of a four-year HSGP operating cycle, each
contracte
they be deemed necessary to ensure continued compliance. Also, agencies receiving
federal funds as part of their HSGP award may be subject to more frequent evaluations
if required for compliance with federal regulations.
To monitor for program compliance, the City engages an independent firm to evaluate
the accounting and internal control systems of organizations funded through the HSGP.
The firm is responsible for monitor
terms and conditions of their respective City Grant Agreements in order to ensure the
adequate safeguarding of City funds and the retention of appropriate financial records
and documentation associated with their expenditure. The partners of Levitt &
Rosenblum, CPAs, have been conducting fiscal evaluations of City-funded non-profit
organizations on behalf of the City for over twenty years.
Prior to each engagement, agencies are given a minimum of 30-days advance notice of
official engagement begins with a
1-2 day site visit, which includes a review of policies, procedures, and program records
along with interviews of appropriate administrative and program staff. Following the site
visit. City staff reviews the report internally before officially communicating the results to
the agency. Finally, agencies are required to provide a written response to the City
documenting their strategies to address any outstanding issues requiring resolution.
2 of 4
Discussion
Vendor Selection
On December 21, 2015, the City issued a Request for Proposals (RFP) for professional
assura-line
bidding site, and notices were advertised in the Santa Monica Daily Press in
accordance with City Charter and Municipal Code provisions. Eighty vendors were
notified, eleven prospective bidders downloaded the RFP. Two of those vendors
submitted proposals by the January 8, 2016 submission deadline.
Responses to the RFP were reviewed and evaluated by a four-member selection
committee comprised of representatives from the Community & Cultural Services
Department (Human Services Division and Cultural Affairs Division) and the Finance
experience; fiscal review methodology; organizational capacity to provide the required
level of service; sample fiscal monitoring tools and reports; and overall cost for providing
the assurance services.
Based upon this evaluation process, staff recommends Levitt & Rosenblum, Certified
Public Accounts (CPAs) as the best qualified firm to provide professional assurance
services for the HSGP. Levitt & Rosenblum, CPAs specializes in auditing, accounting,
taxation, training and consulting for non-profit organizations, including governmental
agencies, social service providers, affordable housing developers, environmental
agencies, and low-income housing partnerships. The partners of Levitt & Rosenblum
have been practicing public accounting for over thirty-five years in the Los Angeles
area, including conducting fiscal evaluations of City-funded non-profit organizations for
the City of Santa Monica for over twenty years.
monitoring and evaluating fiscal, accounting and internal control systems of government
funded non-profit organizations, their fiscal review approach and methodology for
evaluating systems and reporting findings, and their comprehensive, competitive pricing
3 of 4
for requested services. Additionally, fiscal review engagements will be led by one of the
technical expertise at all levels of the engagement. Levitt & Rosenblum, CPAs will
provide professional assurance services for all agencies and programs funded through
the HSGP for a five-year period at a total cost of $150,000.
Financial Impacts and Budget Actions
The agreement to be awarded to Levitt & Rosenblum, CPAs is for an amount not to
exceed $150,000. Funds of $30,000 are available in the FY 2015-16 budget in the
Community and Cultural Services Department. The agreement will be charged to
account 012621.555060. Future year funding is contingent on Council budget approval.
Prepared By:
Marc Amaral, Administrator
Approved Forwarded to Council
4 of 4
Reference:
Agreement
No.10273
(CCS)